I would think this is your gears! Looks like you double posted this, no sweat, but I'm gonna remove the one from the grand cherokee section, you'll get plenty of exposure here in general tech or in drivetrain..._________________Just damn happy to have my Jeep back, it's been a long time!

Also, have you ever regeared your axles? Or do you have the stock setup? How often do you change your differential fluid? Good luck!_________________Just damn happy to have my Jeep back, it's been a long time!

Ill tell you exactly what it is I just did this with my 2000 XJ
Your Trac Lock(limited slip)proably taken a dump on you!
WHY? Probably by not adding the friction modifier required in Limited slips...
did you change the gear oil yourself? if not and maybe if you did they/you might not have put the additive in!!!!!

My suggestion? Go to your nearest MOPAR dealer and buy the Limited slip additive(yes other places sell the stuff, but Dealership is what I recommend and Ive only used) Replace the gear oil one more time! try some Mobil 1 80-90 wt this time and add the bottle of Juice... and call me in the morning... if it still does it then your Trac lock has deffinatly dumped on you
Next option? buying a new Limited slip or a Locker!
please let me know if you need more info ! Im full of it!_________________Rob B
Y2K-XJ
Daily Driven 4.5" W/some cool stuff and Things.